Is the tax referenced in the lien dischargeable in bankruptcy?
If the tax is not a priority tax, or non dischargeable because no returns were filed, the unsecured portion of the lien is discharged in bankruptcy. The secured portion of the lien survives the bankruptcy as a charge on the property if you file Chapter 7; it may be good practice to get a binding order on how much of the lien was secured at filing. Secured tax liens are generally paid in full through a Chapter 13 plan. If the tax is not dischargeable, the lien survives the Chapter 7 discharge as a charge on the pre petition property and it attaches to property acquired after the bankruptcy. In Chapter 13, the lien does not attach to property acquired after the bankruptcy is filed and the Chapter 13 plan should provide for payment in full of the priority tax, such that the lien should be released upon completion of the plan.
